New World raises prices of new flats at Pavilia Farm project in Tai Wai after first phase units sold like hot cakes

Pearl Liu
·3-min read

New World Development priced the second phase of its newest residential project on top of Tai Wai Station in the New Territories 4.8 per cent higher than the first, which sold out in well under two weeks.

The first batch of 337 flats at The Pavilia Farm, measuring 264 square feet to 753 square feet, will be offered at prices ranging from HK$17,250 (US$2,226) to HK$26,737 per sq ft. The average price for the new units works out to HK$19,838 per sq ft, up from HK$18,921 in phase one.

The flats start from HK$5.73 million, and the most expensive one, a 669-sq ft unit, sports a price tag of HK$14.09 million, according to the developer.

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The Pavilia Farm has seen brisk take-up since it first launched on October 17. After two rounds of weekend sales, all 767 units offered in the first phase were snapped up for a total of HK$8.4 billion.

The developer received 22,763 registrations of interest for the roughly 390 units when it debuted, or an equivalent of 58 buyers competing for each available unit. That is the highest ratio since 1997. The second phase of The Pavilia Farm has 1,415 units.

The project, comprising several tower blocks and the largest shopping centre in the eastern part of New Territories, sits on top of the Tai Wai subway station. It will offer a total of 3,090 flats over a seven-year development.

The vibrant sales over the last two weekends came as a relief for Hong Kong’s property market, which has taken a beating in recent months as prices slipped amid rising unemployment and a deepening recession.

Hong Kong’s economy has contracted for four consecutive quarters through June, in the city’s worst economic slump on record. The city’s unemployment rate rose to a 16-year high of 6.4 per cent in the three months to September. Dwindling businesses and loss of personal income have weighed on sentiment among potential buyers and tenants.

But the city’s economy was dealt a dose of optimism by Financial Secretary Paul Chan Mo-po over the weekend. Chan said the decline in third-quarter economic output should narrow, after “significant improvement” in exports in September, writing on his blog last Sunday.

Developers are rushing to sell their new homes, betting on pent-up demand among city dwellers, after the strong response to The Pavilia Farm.

K Wah International will offer 211 units, ranging from HK$6.94 million to HK$23.13 million, at K. Summit in Kai Tak on Saturday.

Hong Kong Ferry Holdings will offer 248 units at Starfront Royale in Tuen Mun. As of Tuesday, it had registered 2,545 potential buyers.

Meanwhile, a small residential site in Tai Po has been awarded to a private firm, Ideal Repute Developments, for HK$451 million, according to a Lands Department announcement late Wednesday. The price translates into HK$4,478 psf. The site will yield a gross floor area of 100,718 sq ft, it said.

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